Cape Town - Rex Trueform Clothing Company (Rextru), which is involved in manufacturing and retailing, shrugged off tough trading conditions to notch up a 15 percent increase in attributable income to R14,3 million in the year to June 30, Stewart Schub, the chairman, said yesterday.
Earnings, diluted by additional shares in issue, came in 10 percent higher at 73,1c a share. The dividend, however, was pegged at 22,5c with shareholders allowed to opt for an N share capitalisation in lieu of a cash payout.
Turnover - reflecting tighter trading conditions - edged up only 6 percent to R232 million but stronger trading margins of 6,8 percent helped operating profit rise almost 16 percent to R15,7 million.
Schub said the satisfactory improvement in operating profit stemmed largely from a good performance from the manufacturing division.
Improved export performance and the continuing success of Queenspark (Rextru's retail arm) also contributed to the group's success.
He added that Rextru's strong financial position was reflected in the 54 percent increase in interest received to R5,9 million, which pushed pretax income up 19 percent to R23,3 million.
The company's cash balance was R39 million at the end of June, well up from last year's R32,2 million.
Rextru was untraded on the JSE on Friday. The ordinary shares last traded at annual lows of R4,90 and the N shares at R4,60 respectively.